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CRR Hiked to 8.25% for Scheduled State Co-operative Banks

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2007-2008/305 · issued 29 Apr 2008 · ~1 min read
Quick answerRBI raised CRR for scheduled state co-operative banks from 8.00% to 8.25% of NDTL, effective May 24, 2008, to manage liquidity. This follows the Governor's Annual Policy statement and tightens funds available for lending.

What changed

The Cash Reserve Ratio for scheduled state co-operative banks was increased by 25 basis points, from 8.00% to 8.25% of net demand and time liabilities. This change takes effect from the fortnight starting May 24, 2008, as per the Governor's Annual Policy statement for 2008-09.

What it means for you

Banks will need to set aside a larger portion of their deposits with RBI, reducing lendable resources. This move aims to absorb excess liquidity and curb inflationary pressures, impacting profitability and loan growth for co-operative banks.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

Scheduled state co-operative banks, Treasury departments of co-operative banks, ALM and compliance teams

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

When does the new CRR rate become effective?

The 8.25% CRR applies from the fortnight beginning May 24, 2008.

What is the basis for this CRR hike?

The hike was announced in the Governor's Annual Policy statement for 2008-09, citing a review of the evolving liquidity situation.

Does this apply to all co-operative banks?

No, it specifically applies to scheduled state co-operative banks, as per Section 42(1) of the RBI Act, 1934.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2255: RPCD.CO.RF.No.BC.62/07.02.01/2007-2008 — "Notification on Maintenance of CRR" dated April 29, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/305 RPCD.CO.RF.No. BC.63 /07.02.01/2007-08 April 29, 2008 All Scheduled State Co-operative Banks Dear Sir Section 42(1) of Reserve Bank of India Act, 1934-Maintenance of CRR Please refer to our Circular RBI/2007-2008/ 288 (RPCD.CO.RF.BC.No.59 / 07.02.01/ 2007-08) dated April 21, 2008 on the captioned subject. As set out in the Governor's Annual Policy statement for the year 2008-09 issued on April 29, 2008, on a review of evolving liquidity situation, it has been decided to increase Cash Reserve Ratio (CRR) for scheduled state co-operative banks from 8.00 per cent to 8.25 per cent of their net demand and time liabilities with effect from the fortnight beginning May 24, 2008. A copy of the relative notification RPCD.CO.RF.No. 62/07.02.01/2007-08 dated April 29, 2008 is enclosed. Please acknowledge receipt to our Regional Office concerned. Yours faithfully (G. Srinivasan) Chief General Manager in-charge RPCD.CO.RF.No.BC. 62 /07.02.01/2007-2008 April 29, 2008 NOTIFICATION In exercise of the powers conferred under the sub-section (1) of Section 42 of the Reserve Bank of India Act, 1934 and in partial modification of its notification RPCD.CO.RF.No.58/07.02.01/2007-08 dated April 21, 2008 , the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every scheduled state co-operative bank shall be 8.25 per cent of its net demand and time liabilities from the fortnight beginning from May 24, 2008. (V.S.Das) Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/305 · issued 29 Apr 2008. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4154&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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